Local Indian pig iron market prices have remained stable during the past week at around INR 15,300/mt ($236/mt) ex-works, even though large producers have lowered their base prices, traders said on Wednesday, August 12.
According to a Kolkata-based trader, while large producers have marginally lowered their prices for August deliveries, market intermediaries have been unwilling to pass on the benefits to buyers, citing higher transportation and inventory carrying costs as well as small transaction volumes particularly for steel grade pig iron.
The trader said that the small transaction volumes have not been sufficient for dealers to pass on the lower mill prices to buyers and take a hit on their margins. However, he was quick to acknowledge that, with rising inventories, it will be difficult for deals to maintain prices unchanged for very long.
Market sources said that large pig iron producer Neelachal Ispat Nigam Limited (NINL) has reduced its base prices for the second time in less than a month by INR 300/mt ($4.60/mt), while Rashtriya Ispat Nigam Limited (RINL) has lowered its prices by INR 800/mt ($12.5/mt) in the same period.
$1 = INR 64.88